Annuities are looking increasingly attractive for clients
Andrew Tully
13 February 2023 •4 min read
Andrew Tully looks at the return of annuities to the retirement income mix and says while drawdown is here to stay rising rates are putting guaranteed income for life back on the map...
Annuities haven't been considered by advisers for most clients for many years now. But one of the outcomes from the volatile and unusual market conditions we have experienced through last year is annuity rates moving up by more than 50%, to their highest level in around 14 years. As a result, many more will be considering using an annuity as part of a retirement strategy alongside drawdown.Back in January 2022, the 15-year gilt yield was around 1.15%. Given the increased inflationary pressures and the war in Ukraine this increased steadily through the year to stand at around 3.5% today,...
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